Deliveroo has picked London to launch its hotly anticipated initial public offering (IPO) thanks to new measures announced in yesterday’s Spring Budget.
Deliveroo’s IPO, expected to take place this month and raise over £2 billion, is set to be one of 2021’s largest listings providing a significant boon for London.
The delivery giant is understood to have chosen London to go public after Chancellor Rishi Sunak announced his support for an overhaul of London Stock Exchange rules, allowing founders to hold on to extra voting rights after their company lists in the UK.
The loosening of rules was recommended by former EU financial services commissioner Lord Jonathan Hill in a review published yesterday, which was subsequently endorsed by Sunak.
The Hill review suggested that companies trading under a dual-class share structure should be allowed to trade on the LSE’s “premium” segment.
While companies with a dual-class structure, which allow founders to hold on to extra voting rights, are currently able to list on the LSE they cannot move up to premium listings on the platform.
This change is designed to attract fast growing tech companies who have traditionally favoured New York and Amsterdam.
“Deliveroo is proud to be a British company, and the selection of London as its home for any future listing reflects Deliveroo’s continued commitment to the UK,” Deliveroo’s chair Claudia Arney said.
Sunak celebrated the announcement, stating: “Deliveroo has created thousands of jobs and is a true British tech success story. It is great news that the next stage of their growth will be on the public markets in the UK.”
Deliveroo added: “Alongside the dual-class share structure, Deliveroo intends to have a strong commitment to corporate governance standards including a majority independent board of directors as well as upholding diversity standards”.